S-Distribution Center supplies parts to three plants of K-automobile manufacturing company. Since the three plants employ the JIT production system, it is important for S-Distribution Center to deliver small quantities of parts frequently and quickly on time. This paper presents a case study on the improvement of order-picking operation in S-Distribution Center. The study is focused on the reductions of move time and waiting time by redesigning the parts storage location, picking-order terminal location, retrieval policy, and equipment operation policy. The proposed operation system for S-Distribution Center is evaluated through a simple computation analysis and computer simulation. Furthermore, the reducible numbers of equipment and order pickers are investigated by performing a sensitivity analysis.